Wednesday, January 25, 2012

TAMPA --
Outlet mall shoppers of Tampa, your world soon could get much better.
The nation's largest operator of outlet malls is looking for a
location in the Tampa area, potentially building a property in the style
of Ellenton Premium Outlets. And though no deal or specific location is
public yet, the bull's-eye is just over the line in Pasco County at the
Cypress Creek Town Center site.

A new outlet center would mark a new chapter for Cypress Creek, which
never left the drawing board because of environmental litigation, and
showcase the evolution of outlet malls from a sideshow in the retail
world to a major driver of growth.

One reason for that rise: Shoppers love a discount.

Foot traffic at outlet centers has been surging in recent years,
especially during the holidays. Outlet centers that once held only
castoffs and overstocks now have full-size stores run by some of the
country's biggest brands: Nike, Brooks Bros., Kate Spade, Gymboree,
Levis, Kenneth Cole, Saks Fifth Avenue and others.

"Outlets are one of the hottest development areas in the whole
country," said John Crossman, president of the commercial real estate
brokerage Crossman & Company. "People love a discount, and outlets
are a way for people to spend less money, or feel like it anyway, and
still get name brands."

The Tampa project is led by Indianapolis-based Simon Property Group.
Recently, Simon started circulating proposals to retail tenants and
developers for new outlet malls. Now, Simon has started promotions in
retail trade magazines, with four sites under construction or in
development: Merrimack, N.H., Phoenix, Toronto and Tampa.

"Grow your business in style," the company tells potential retailers
in promotional material. Simon is dedicated to the outlet concept and is
"offering you the ability to build your business as well through new
growth and acquisition."

Simon officials say they cannot talk specifically about locations or a
timeline for the Tampa project. But spokesman Les Morris noted that
Simon recently bought 22 outlet centers nationwide, including a
half-dozen in Florida, and the company now holds 58 outlet centers in 27
states and one in Puerto Rico.

Morris noted that Simon has announced the start of construction in
Merrimack, and soon a site in the Galveston, Texas, area. And Simon has
deals to build premium outlets in Chesterfield, Mo., Japan and Malaysia.

The Tampa-area center could end up in any of several locations,
though one area stands out, retail brokers say: something 30 minutes
north of Tampa on the Pasco County line.

That's because Simon already has the other directions covered. The
Ellenton outlet is 45 minutes south of Tampa, and to the east, there are
two Simon outlets in Orlando.

Because outlet operators tend to locate their sites on major freeways
just outside cities, that leaves the north — and Cypress Creek — a
likely prospect, said Jim Kovacs, a retail broker with Colliers
International.

"It makes sense there because it can draw from Tampa and everywhere north, even to Ocala or Gainesville," Kovacs said.

"If Simon can do a prime outlet there, that would be a big deal for
Tampa Bay. You wouldn't have to drive all the way to Orlando," he said.

The Cypress Creek site sits right up against Interstate 75 and State
Road 56, corridors through areas of Pasco County that saw rapid
expansion before the housing collapse.

It's always possible Simon could pick a location outside Cypress
Creek along Interstate 75. But if not, there's an opportunity now with
litigation over the Cypress Creek site entering a new phase.

Controversy over the site arose in 2004 when Cleveland-based mall
developer the Richard E. Jacobs Group and Tampa-based Sierra Properties
announced plans for a 1.3 million-square-foot shopping center there.

The Sierra Club environmental group, no relation to the Sierra
developer, sued to stop the project, saying it violates the Federal
Clean Water Act and threatened two endangered species: the wood stork
and eastern indigo snake.

As litigation dragged on, several major retailers dropped out of the
mall project and two other major centers opened for business in Pasco:
The Shops at Wiregrass open-air mall and The Grove.

Then in December, the U.S. Court of Appeals overturned much of a
lower court opinion that had placed the Cypress Creek project on hold.
Developers took that as a green light.

Jacobs officials this week declined to comment on the outlet center
or their plans for the site, but executives recently wrote to Pasco
County officials about the court ruling, saying they are "confident that
this development will now finally proceed forward."

The other major landowner in the area, Sierra Properties, also declined to comment.

As for the Sierra Club, it has no plans to give up the fight.

"Heck no," spokeswoman Denise Layne said. "As a matter of fact, I'd
be really interested to see how they plan to handle the whole wildlife
thing around a mall, because there is nowhere else for them to go."

1 comment:

the Wild Life can be safely relocated theres plenty woods close by, we need to bring more jobs & income to our communities i understand the wild life need their homes & im all for that, We Need to afford our homes too we need more jobs/ incomes!! the adorable lil critters CAN be safely relocated nearby woods or to wild life sanctuaries if Sierra grp will just Work Together instead of Against the Developers & Simon Group this project can Happen the right way help our communities out w/o afflicting harm on our lil wild furry friends. Thank YouMuch Luck w/ this, Michele Fisher